Egypt prioritises private sector growth, fiscal stability – FinMin

Egypt’s Minister of Finance Ahmed Kouchouk emphasised the importance of increasing the private sector’s role in the economy, noting that this is a priority for upcoming financial and economic reforms.

The minister also stressed the importance of fiscal policies in maintaining macroeconomic stability and public finance sustainability during an open discussion with business community representatives on Monday.

Egypt is adopting disciplined fiscal policies aimed at supporting the business community and driving economic activity, Kouchouk added during an open discussion organised by Dcode Economic & Financial Consulting.

These policies will focus on promoting production and exports to enhance the competitiveness of the Egyptian economy.

The minister explained that the government’s goal is to create a stimulating economic environment that attracts both local and foreign investment. This environment will be based on fair competition. The minister announced the launch of a tax relief package to restore investor confidence, foster partnerships, and enhance competitiveness both locally and globally.

“Our goal is to broaden the tax base with incentives, integrate the informal economy, and establish a medium-term strategy to ensure stability of tax policies and increase investors’ certainty rates,” the minister added.

He announced upcoming initiatives with measurable goals. Incentives will be tied to goal achievement in sectors like information technology (IT), export, industry, and renewable energy.

The government will provide sufficient annual funding for the implementation of the automotive industry’s localisation and export strategy, including electric vehicles, as per a statement published by the Egyptian Cabinet.

The government launched a new tourism initiative worth 50 billion pounds. This initiative aims to encourage the rapid construction of hotel rooms and accommodate a larger number of tourists. In addition, the government is working in coordination with the Ministry of Communications and Information Technology to launch a package of facilitation and support for the settlement of certain IT industries.

Kouchouk emphasised the government’s commitment to quickly reduce the debt ratio and burden of domestic product. This is part of an effort to improve external indebtedness indicators and create new financial spaces for more targeted spending.

Attribution: The Egyptian Cabinet statement

Subediting: M. S. Salama